What is Investing?
As our mentor Steve McKnight taught us, 'investing' means different things to different people.
The definition of investing...
The definition of “investing” is to: “put (money) into financial schemes, shares, property, or commercial venture with the expectation of achieving a profit.
What is most important is understanding what investing means to you right now and to analyse and evaluate assets in light of your definition.
Only when you have understood what it means to you, will you start generating premium profits.
Why? Because not all investments are equal, and it vital that investors we need a way to distinguish the good from the bad.
Jason and Shehan offer tailored solutions
Here is where Jason and Shehan can offer services tailored to your individual needs.
Based on your available time, money, skill, resources and most importantly - risk tolerance, together we can create a realistic plan to premium profits using real estate as our chosen asset class.
Let’s talk Risk.
In investing, “Profit” is the reward for taking on risks. The higher the risk, the higher the reward and vice versa.
There is never the “perfect” time to buy an investment property or take on any particular property project. "It is always a great time to buy a great an asset."
The missing piece is the definition of “great” in relation to time and asset in that sentence.
Financial risk is the possibility of financial or monetary loss. Your investment fails and you lose income.
There is another element to financial loss, not just the money you have lost but also the money you lose by not being highly efficient with your money, i.e opportunity cost.
The way Jason and Shehan approach risk is to try and identify the known risk and the unknown risks of an investment project. As rudimentary as this sounds, sustained success comes from effective application of systems methods and procedures towards how these risks are mitigated and managed.
Risk Management is a Skill
The difference between mediocre returns and sustainable long-term investing is how blind you are to risks and attitude to risks you know about but chose to ignore and hope for the best.
Jason and Shehan have developed systems and process to identify risks, process them and mitigate those risks down to an acceptable level to proceed with the investment. In other words, we got the risks covered through expert analysis.
When we cannot manage the risks effectively, then we simply do not undertake the project.
Risk management is a skill and indeed a skill that improves over time with experiential learning.
Indeed, there are highly profitable projects that you might not be undertaking right now because you do not feel you possess the necessary skills to effectively manage the risks involved.
Whether it is a simple buy and hold to rent out or a cosmetic renovation or as advanced as a 10x dwelling development.
If you could learn some new tools and techniques to deal with risks, then any one of these strategies could be doable for you. It is all about having the right help at the right time.
Step in Premium Property Profits.
The truth is that risk is present in every stage of the property cycle. From analysing to buying to managing it to completion and selling (or holding).
If you do not analyse well, you do not buy well, as a result you set yourself up for failure because it is tough to manage a poorly bought project to completion.
You are then hoping and praying you get lucky with the sales process to avoid suffering a financial loss.
The problem with that is obvious however what may not be obvious is that Jason and Shehan know one thing for certain. You make money when you buy – not when you sell.
Selling is just the process of closing the deal off. You need to ensure you have locked in your profit before you buy.
Put simply, a poorly bought investment, is managed poorly, and performs poorly once sold.